Revolutionizing Rural Energy Access Through Innovative Technology
In rural Kenya, the majority of the population relies on unsustainable energy sources due to lack of access to reliable infrastructure. Companies like M.M-Kopa are addressing this issue by leveraging technology such as solar panels and mobile money for a pay-as-you-go model. Through a network of sales agents equipped with smartphones, they are able to reach remote areas, provide affordable energy solutions, and empower local communities. This approach not only improves access to clean energy but also fosters economic growth and sustainability.
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Presentation Transcript
M M- -Kopa in Kopa in Rural Kenya Rural Kenya The Role of Technology in the Business Model By Lyndon Sam Supervisors: Jonathan Greenacre & Shinsuke Tanaka Summer 2020
The Problem The Problem 45% of the population (84% of rural population) is off-grid meaning they are using unsustainable sources of energy like firewood, kerosene, and paraffin. Solar technology is available but companies can t reach rural areas due to unreliable infrastructure, high fixed costs, low information on demand and lack of familiarity with local communities Multilateral Development Banks are throwing money at the problem World Bank provided over $11.5bn towards renewable energy, but Sub- Saharan Africa has the slowest rate of growth in renewables capacity.
M M- -Kopas Kopa s Secret to Success Secret to Success Pay-As-You-Go Model (Based on Mobile Money) Sales Agent Network Equipped with Smartphones Remote-Controlled Solar Panels
PAYGO Model PAYGO Model Basic M Basic M- -Kopa Total Cost over 365 days: Total Cost over 365 days: $195.71 Kopa Package: Package: $27.63 $27.63 for installation and for installation and $0.46 $195.71 $0.46 daily. daily. Total Cost of Alternatives (Kerosene, Batteries, Firewood, Mobile Total Cost of Alternatives (Kerosene, Batteries, Firewood, Mobile Charging Services): Charging Services): $272 $272 M M- -Kopa Kopa offers better technology and offers better technology and $76.30 $76.30 of savings of savings
Sales Agent Network Sales Agent Network 2000 2000 commission commission- -based sales agents based sales agents 8 8- -10% Commission 10% Commission Recruited based on familiarity with local areas Recruited based on familiarity with local areas Navigate using Geographic Mapping Navigate using Geographic Mapping Use tea parties to aggregate demand and Use tea parties to aggregate demand and create social incentives to buy create social incentives to buy Use Microsoft Kaizala for communication, Use Microsoft Kaizala for communication, training, sales data and stock management. training, sales data and stock management. Register New Customers on the Spot by taking a Register New Customers on the Spot by taking a picture and creating a profile. picture and creating a profile.
GSM GSM- -Enhanced Solar Equipment Enhanced Solar Equipment Allows M Allows M- -Kopa energy consumption patterns, extend credit to energy consumption patterns, extend credit to device owners, and transmit data between device owners, and transmit data between machines. machines. Kopa to monitor customer behavior, to monitor customer behavior, M M- -Kopa Kopa can also shut off and restore service can also shut off and restore service based on payment regularity based on payment regularity Customers facing financial hardship can Customers facing financial hardship can suspend payment for 30 days with no penalty suspend payment for 30 days with no penalty
M M- -Kopas Kopa s Impact Impact Generates over 72,000 mobile payments Generates over 72,000 mobile payments per day per day Increased security Increased security Customers enjoy 62.5 million hours Customers enjoy 62.5 million hours of kerosene of kerosene- -free lighting per free lighting per month month More family time More family time Better educational outcomes for Better educational outcomes for children children 80% of clients report an increase in 80% of clients report an increase in income after using an M income after using an M- -Kopa Kopa product product 84% reduction in kerosene usage 84% reduction in kerosene usage (2017) (2017) Average household saves approx. $750 Average household saves approx. $750 over 4 years over 4 years Better access to information Better access to information Tons of CO2 to be reduced over Tons of CO2 to be reduced over product lifetimes: 1.7 million product lifetimes: 1.7 million 46% of households use M 46% of households use M- -Kopa a business or income a business or income- -generating activity Kopa to support to support generating activity
Research Methods, Limitations & Next Steps
